The world's transformation from linear to circular economies is a major issue today.The demand for goods and services also contributes to environmental damage.Through the Theory of Planned Behavior, this study demonstrates how human behavior influences the adoption of circular economy practices and sustainable business performance.This study examines the role of green intention and green innovation in mediating the relationship, as well as the moderating effect of barriers on this relationship.Data were collected through questionnaires completed by 447 respondents, who were employees in Indonesian accommodation companies.The Structural Equation Model was used to test the model using the Smart PLS 4 tool.The findings show a positive effect of the Theory of Planned Behavior on circular economy practices and sustainable business performance.The role of green intention and green innovation in mediating the relationship in the model also shows positive results.Barriers were found to both strengthen and weaken relationships within the model.The unexpected findings that circular economy practice fails to mediate the relationships in the model and barriers fail to moderate these relationships challenge further explanation.This study also offers theoretical and managerial implications to help accommodation providers address challenges and capitalize on opportunities in their sustainability efforts.
Mamengko et al. (Mon,) studied this question.